0800 9700539
Show Menu

Compliance with HMRC rules

Today we launch a new and very important page on http://www.companyrescue.co.uk/

Compliance with tax and VAT

HM Revenue & Customs and compliance is a fundamental issue for all of us and HMRC are very keen to improve tax rule compliance in SME businesses. If your business does comply with all of the myriad rules and regulations you don't need to read this guide. If you are not sure that your business IS compliant have a look at our guide page today!

CVA's rejected because of poor compliance.

We have had two CVA's rejected recently, not because they were poorly written of course(!), nor because they offered very low dividends. Actually they both offered high dividends in 3 years but both were rejected by HMRC because the directors had not complied with the tax rules prior to the business' insolvency.

One had failed to submit 3 VAT returns and another had failed to register for VAT and file VAT returns some 18 months before becoming insolvent. Despite bringing those issues up to date the companies in question both had PAYE and P11D compliance issues allied to previous insolvencies of the directors.

So be warned get your compliance looked at!

CompanyRescue - Miracle workers?

Let's just call this guy Mr X, he called our helpline and asked the following questions:

"My company is viable but we have had a winding up petition from the VAT man, I have read that you can protect my company and stop the peitition is that right"?

After replying that we have done this many times before and will try for him we asked when was the petition issued and when is the petition hearing?

He replied "Oh, the hearing is today I am outside the High Court now"!

Not a company we would want to help!

Got to admire him for trying but really he should have been acting a LITTLE sooner than the day of the hearing.

The most common complaint we hear - Accountants don't help my company!

Now we all need accountants, and because I am on a train with my auditor I would just like to start by saying we have a good working relationship with Greaves West & Ayre !

Our turnaround and insolvency advisors hear many things when talking to new clients but the most common complaint we hear is: "my accountants are useless, we have been asking for management accounts for months", we don't know if we are making or losing money"!.

Whilst it is hardly fair to blame everyone else when things go wrong we DO have some sympathy with these views. Often accountants will counter the cry by complaining the client does not provide information on time. So there are faults on both sides

The real problem is management of expectation. Accountants should not claim they will produce monthly management information (MI) if that is not what they re set up to deliver. If they simply produce annual accounts and tax returns, then all well and good, but don't sell the monthly service if you cannot deliver, this creates ill feeling and is poor marketing for your practice.

Likewise directors should not assume, they should specify precisely what they want to be provided with and sign an agreement to deliver their side of the bargain.

Well the fact is this is not an ideal world and we still get daily complaints and requests for help. We are not set up to deliver this service, we do turnaround!

So the really good news is we have teamed up with The FD Centre to provide a high quality service, ranging from monthly management information provision to acting as a finance director for your business. FDC has 45 accountants with a business background right across the UK.

Additionally we have a long term relationship with The Outsourced Finance Department and Insight Associates
who can handle all aspects of bookkeeping through to acting as an FD and "interpreter" for the entrepreneurs amongst you who want plain English accounting help.

We are very pleased with these relationships because we often rescue companies only to see them fail when the financial reporting fails. With good MI the problems will be spotted sooner and then the board can act sooner.

Banks and investors NEED quality MI to continue to support companies through these uncertain times, so if you are having problems with MI please consider getting proper advice.

I strongly recommend both our esteemed colleagues. If YOU NEED good quality financial information get in touch with me.

Crisis what Crisis?

In the current "credit crunch" environment is easy to say that everyone in retail or property market is suffering but, thats not just what we are witnessing. Currently, we ARE working with retailers and estate agents BUT we are also working with the following clients:

  • Printing and print finishing

  • Automotive consultancy

  • Bio fuels company

  • Publishing

  • Software companies (2)

  • Computer hardware and software (large business clients)

  • Community Interest Company (enabling unemployed to return to work)

  • Building and Bricklaying companies (3)

  • Sandwich manufacturer

  • Accountancy practice for pubs

  • Motor dealers and service (2)

  • Water coolers and distributors

  • Recruitment company

  • Electrical & Mechanical Service Solutions

  • TV post production

  • Window and conservatory manufacturing

  • Retail/distribution hobbies and models

Right now KSA is advising 25 live company voluntary arrangement (CVA) clients, an all time record for us and we are seeing pain across many sectors. I suppose that if you analyse the list above they do have a common theme. They do tend to be consumer / customer facing and this, I fear, is a sign of things to come in the UK over the next 18 month. Rising food and fuel prices, higher taxes, rising mortgage costs all against a backdrop of modestly rising incomes, means a tightening of the consumer purse.

Will the froth be blown off the economy and growth slow to under 1.5%, or will we see a recession? Its too early to say but growth is slowing rapidly and we are seeing a commensurate rise in demand for CVA's. Want a quick idea of how a CVA works? Click here for our FREE unique CVA flowchart



The information contained in this Blog (the "Blog") is intended solely to provide general guidance on matters of interest for the personal use of the reader, who accepts full responsibility for its use. The application and impact of laws can vary widely based on the specific facts involved. Given the changing nature of laws, rules and regulations, and the inherent hazards of electronic communication, there may be delays, omissions or inaccuracies in information contained in this Blog. Accordingly, the information on this Blog is provided with the understanding that the authors and publishers are not herein engaged in rendering professional advice or services. As such, it should not be used as a substitute for consultation with professional and competent advisers. Before making any decision or taking any action, you should consult a professional adviser. 

While we have made every attempt to ensure that the information contained in this Blog has been obtained from reliable sources, KSA Group is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information in this Blog is provided "as is", with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. Nothing herein shall to any extent substitute for the independent investigations and the sound technical and business judgment of the reader. In no event will KSA Group, or its directors, employees or agents, be liable to you or anyone else for any decision made or action taken in reliance on the information in this Blog or for any consequential, special or similar damages, even if advised of the possibility of such damages. 

Links to Related Internet Sites 

Certain links in this Blog connect to third party web sites. KSA Group does not accept any responsibility for, nor makes any representations as to the accuracy of, any content in such third party web sites. 

Third Party Comments 

Third parties may submit comments for publication on the Blog. Any such comments are submitted on the basis that KSA Group will review and may edit such comments, and that not all submissions will be published. Any third party comments published on the Blog (whether edited or not) are third party information for which KSA Group takes no responsibility and disclaims all liability, and the above disclaimer applies to any such third party comments. 

Privacy Statement 

If and to the extent that you submit any personal data (such as your name and email address) to KSA Group through this Blog, including by email to the Blog manager, KSA Group (as data controller) confirms that it will only use any such personal data for the purposes for which you have provided such data. 


The copyright in the text, podcasts, PowerPoint slides, layout and any other materials on this Blog (other than any third party comments) is owned by KSA Group Ltd. All rights are reserved. 
If you wish to use or copy any of the text or other materials on this Blog (or any extracts from the same), you must first contact KSA Group for copyright permission in relation to the proposed use. In addition, any use of text or other materials on this Blog (or any extracts from the same) in published materials must identify the KSA Group materials involved and reference the KSA Group author's name. 

The browser you are using is Explorer 8 and this site is not compatible with this version. Please upgrade or switch, which is free, for a more secure and better browsing experience.Close